Legendary trader Peter Brant believes Bitcoin (BTC) could be on the brink of a major breakout, drawing parallels to the stock market’s massive rally in the mid-1980s.
According to Brandt, BTC is reflecting historical patterns that precede prolonged bull markets, suggesting Bitcoin could follow a similar trajectory.
In a post on X (formerly Twitter), prominent trader Peter Brandt pointed out striking similarities between the current Bitcoin chart and patterns observed in the stock market during major breakout periods in the mid-1980s.
Brandt highlights the Bitcoin vs M1 Money Supply chart (BTC/WM1NS), which compares the value of Bitcoin to the total money supply in the U.S. economy.
According to Brandt, the BTC/WM1NS chart mirrors a pattern seen about 40 years ago when the Dow Jones Industrial Average (DJIA) sparked a bull market that ended the stagflationary era of the 1970s.
Bullish pattern: Inverted head and shoulders
Brandt highlights that the BTC/WM1NS chart is showing an inverse head and shoulders pattern. This bullish formation indicates that buyers will no longer wait for the price to drop back to lows before entering the market.
If the BTC/WM1NS chart witnesses a breakout, it would suggest that Bitcoin’s value is significantly outpacing the increase in the US Dollar.
Brandt believes that in the 1970s, the Dow Jones Industrial Average exhibited a pattern that is currently reflected in Bitcoin’s performance in response to the growing supply of the US dollar.
The similarities in chart structure to the DJIA from the 1970s are striking, and the continuation of this inverse head-and-shoulders pattern could signal a major Bitcoin breakout is on the way.
Additional analysis from TechDev
Adding to the bullish sentiment, crypto strategists Technology development, We believe BTC is gearing up for a significant price surge, with TechDev noting that Bitcoin’s trading range on the five-day chart is at its tightest level in the last eight years.
The narrowing of the trading range suggests that a subsequent breakout will likely lead to a sharp upside. He also noted the BTC vs. M1 money supply chart, which recently saw a “textbook breakout.”
TechDev argues that this breakout could trigger a parabolic surge, ending the cycle with a surge similar to that seen in the 2017, 2015 and 2013 bull markets.
BTC Price Analysis
At the time of writing, Bitcoin (BTC) was trading at $70,784, up 2.5% in 24 hours.
Bitcoin could be on the brink of a major surge thanks to patterns reminiscent of past market breakouts and technical indicators pointing to bullish momentum.
The coming months will be crucial in determining whether Bitcoin lives up to these optimistic predictions and has the potential to become a game-changer in the financial landscape.
Disclaimer: The content of this site does not constitute investment advice. Investing is speculative and your capital is at risk when investing.
